As the length of the unexpired term of a Heston residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Heston will qualify for this right; however a conveyancer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Heston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 9 months of unsuccessful discussions with the freeholder of her two bedroom apartment in Heston, Laura commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension was concluded in March 2013. The landlord’s fees were negotiated to slightly above 500 pounds.
In 2012 we were called by Mr and Mrs. P King who, having bought a garden flat in Heston in July 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Heston with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease finished on 22 May 2095. Given that there were 69 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
An example of a Lease Extension case for a Heston residence is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired term as at the valuation date was 60.45 years.